Sensus Healthcare, Inc. (Nasdaq: SRTS), a medical
device company specializing in highly effective, non-invasive,
minimally-invasive and cost-effective treatments for oncological
and non-oncological conditions, announces financial results for the
three and six months ended June 30, 2022.
Highlights from the second quarter of 2022 and
recent weeks include the following (all comparisons are with the
second quarter of 2021, unless otherwise indicated):
- Revenues were $12.1 million, up
124% from $5.4 million
- Net income was $3.5 million, or
$0.21 per diluted share, compared with a net loss of $(0.3)
million, or $(0.02) per share
- Adjusted EBITDA, a non-GAAP
financial measure, was $4.7 million, compared with $(0.1)
million
- Exited the quarter with $33.7
million in cash and cash equivalents
- Received orders for 10 TransDermal
Infusion Systems™ from Hair Enhancement Centers to provide
needleless injections of U.SK Under Skin’s hair-growth serum Skin
Savers Hair™
- Shipped 5 units to Asia
- Shipped a second SRT System to
Colorado State University College of Veterinary Medicine and
Biomedical Sciences
- Expects continued growth in the
third quarter and affirms expectations for full-year
profitability
Management Commentary
“I’m delighted with our continued strong
financial performance, with significant year-over-year revenue
growth and continued profitability,” said Joe Sardano, chairman and
chief executive officer of Sensus Healthcare. “We remain focused on
our core dermatology business, building upon the initiatives we put
in place during the past two years, leveraging improved
reimbursement for superficial radiation therapy to treat
non-melanoma skin cancers and keloids, offering an attractive fair
value lease program to physician customers, maintaining an active
presence at dermatology conferences and trade shows and, most
recently, implementing a new marketing campaign that includes both
digital and television platforms. More than half our customers have
purchased premium-featured SRT-100 Vision™ systems under a leasing
agreement, while approximately 80% of systems coming off a one-year
warranty continue with a service agreement, providing a significant
source of recurring revenue.
“The launch of our TransDermal Infusion System™
is going very well and generating significant interest among
potential customers who recognize its ability to eliminate
injections. The system permits many procedures to be less painful
for patients, and interest is particularly high for aesthetic
facial procedures, hair growth and hyperhidrosis treatments. As
validation of its utility, we took orders to deliver 10 systems to
Hair Enhancement Centers. HEC currently operates nine centers and
we plan to support their expansion plans. Two systems will be
delivered in this year’s third quarter with the remainder in the
fourth quarter. In addition, work to study the delivery of
finasteride is underway by Dr. Glynis Ablon of the Ablon Skin
Institute and Research Center and Associate Clinical Professor at
UCLA.”
Mr. Sardano concluded, “Of note, we believe the
treatment of non-melanoma skin cancer is not impacted by
geopolitical and economic uncertainty. Sensus is executing our
business plan as anticipated, with an organization fully dedicated
to the success of Sensus and our customers.”
Second Quarter Financial
Results
Revenues for the second quarter of 2022 were
$12.1 million, compared with $5.4 million for the second quarter of
2021. The 124% increase was primarily driven by a higher number of
units sold, increased service revenue and the impact of COVID-19 on
second quarter 2021 results.
Cost of sales for the second quarter of 2022 was
$3.8 million, compared with $2.1 million for the prior-year
quarter. The increase was due to higher sales in the 2022
period.
Gross profit for the second quarter of 2022 was
$8.3 million, or 68.6% of revenues, compared with $3.3 million, or
61.1% of revenues, for the second quarter of 2021. The increases
were primarily driven by a higher number of units sold in 2022,
service revenue on installed units, and the impact of COVID-19 on
second quarter 2021 results.
Selling and marketing expense for the second
quarter of 2022 was $1.7 million, compared with $1.3 million for
the second quarter of 2021. The increase was primarily attributable
to higher tradeshow expense and, advertising expense and
commissions, offset by a decline in other marketing expenses.
General and administrative expense for the
second quarter of 2022 was $1.1 million, compared with $1.4 million
for the second quarter of 2021. The decrease was primarily due to
higher legal and professional fees in 2021.
Research and development expense for the second
quarter of 2022 was $0.8 million, compared with $0.9 million for
the prior-year second quarter.
Provision for income taxes was $1.1 million for
the second quarter of 2022, compared with no income tax provision
for the prior-year second quarter.
Net income for the second quarter of 2022 was
$3.5 million, or $0.21 per diluted share, compared with a net loss
of $(0.3) million, or $(0.02) per share, for the second quarter of
2021.
Adjusted EBITDA for the second quarter of 2022
was $4.7 million, compared with $(0.1) million for the second
quarter of 2021. Adjusted EBITDA, a non-GAAP financial measure, is
defined as earnings before interest, taxes, depreciation,
amortization and stock-compensation expense. Please see below for a
reconciliation between GAAP and non-GAAP financial measures, and
the specific reasons these non-GAAP financial measures are
provided.
Cash and cash equivalent were $33.7 million as
of June 30, 2022, compared with $14.5 million as of December 31,
2021. The company had no outstanding borrowings under its revolving
line of credit as of June 30, 2022 or December 31, 2021.
During the second quarter of 2022, the Company
repurchased 126,523 shares of common stock at prices ranging from
$7.46 to $8.36, for a total of $1.0 million.
Six Month Financial Results
Revenues for the first half of 2022 were $22.4
million, compared with $8.5 million for the first half of 2021. The
164% increase was primarily driven by a higher number of units sold
in 2021, service revenue on installed units, and the impact of
COVID-19 on first half 2021 results.
Cost of sales was $7.0 million for the first
half of 2022, compared with $3.6 million for the first half of
2021. The increase was commensurate with higher sales in the 2022
period.
Gross profit for the first half of 2022 was
$15.4 million, or 68.8% of revenue, compared with $4.9 million, or
57.6% of revenue, for the first half of 2021. The increases were
primarily driven by a higher number of units sold in 2022, service
revenue on installed units, and the impact of COVID-19 on first
half 2021 results.
Selling and marketing expense was $2.9 million
for the first half of 2022, compared with $2.3 million for the
first half of 2021. The increase was primarily attributable to
higher tradeshow expense and, advertising expense and commissions,
offset by a decline in other marketing expenses.
General and administrative expense was $2.4
million for the first half of 2022, unchanged from the prior-year
period.
Research and development expense for the first
half of 2022 was $1.6 million, unchanged from the first half of
2021.
Net income for the first half of 2022 was $19.6
million, or $1.17 per diluted share, compared with a net loss of
$(1.4) million, or $(0.08) per share, for the first half of 2021.
Net income for the 2022 period includes a $12.8 million gain on the
sale of a non-core asset during the first quarter of 2022.
Adjusted EBITDA for the first half of 2022 was
$21.5 million, compared with $(0.9) million for the first half of
2021.
Use of Non-GAAP Financial
Information
This press release contains supplemental
financial information determined by methods other than in
accordance with accounting principles generally accepted in the
United States (GAAP). Sensus Healthcare management uses Adjusted
EBITDA, a non-GAAP financial measure, in its analysis of
performance. Adjusted EBITDA should not be considered a substitute
for GAAP basis measures, nor should it be viewed as a substitute
for operating results determined in accordance with GAAP.
Management believes the presentation of Adjusted EBITDA, which
excludes the impact of interest, income taxes, depreciation,
amortization and stock-compensation expense, provides useful
supplemental information that is essential to a proper
understanding of the financial results of Sensus Healthcare.
Non-GAAP financial measures are not formally defined by GAAP, and
other entities may use calculation methods that differ from those
used by Sensus Healthcare. As a complement to GAAP financial
measures, management believes that Adjusted EBITDA assists
investors who follow the practice of some investment analysts who
adjust GAAP financial measures to exclude items that may obscure
underlying performance and distort comparability. A reconciliation
of the GAAP net loss to Adjusted EBITDA is provided in the schedule
below.
|
|
|
|
|
|
SENSUS
HEALTHCARE,
INC. |
GAAP TO
NON-GAAP
RECONCILIATION |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended |
|
For the Six
MOnths Ended |
|
|
|
June 30, |
|
June 30, |
(in
thousands) |
|
|
|
2022 |
|
|
|
|
2021 |
|
|
|
2022 |
|
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
|
|
$ |
3,524 |
|
|
|
$ |
(279 |
) |
|
$ |
19,586 |
|
|
|
$ |
(1,394 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
|
74 |
|
|
|
|
136 |
|
|
|
166 |
|
|
|
|
345 |
|
Stock compensation expense |
|
|
|
40 |
|
|
|
|
59 |
|
|
|
97 |
|
|
|
|
120 |
|
Income Tax |
|
|
|
1,070 |
|
|
|
|
- |
|
|
|
1,718 |
|
|
|
|
- |
|
Interest, net |
|
|
|
(24 |
) |
|
|
|
- |
|
|
|
(27 |
) |
|
|
|
- |
|
Adjusted EBITDA, non GAAP |
|
|
$ |
4,684 |
|
|
|
$ |
(84 |
) |
|
$ |
21,540 |
|
|
|
$ |
(929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
Sensus Healthcare will host an investment
community conference call today beginning at 4:30 p.m. Eastern
time, during which management will discuss financial results for
the second quarter of 2022, provide a business update and answer
questions. To access the conference call, please dial 888-390-3967
(U.S. and Canada) or 862-298-0702 (International). Please direct
the operator to be connected to the Sensus Healthcare conference
call. The call will be webcast live and can be accessed at the
following link, which also may be found in the Investor Relations
section of the Company’s website at www.sensushealthcare.com.
Following the conclusion of the conference call,
a replay will be available by dialing 888-539-4649 (U.S. and Canada
Toll Free) or 754-333-7735 (International). At the system prompt,
dial the replay code 157325 followed by the # sign. Playback will
begin automatically. An archived webcast of the call will also be
available in the Investor Relations section of the Company’s
website for a period of time.
About Sensus Healthcare
Sensus Healthcare, Inc. is a medical device
company specializing in highly effective, non-invasive, minimally
invasive and cost-effective treatments for both oncological and
non-oncological conditions. Sensus offers its proprietary
low-energy X-ray technology known as superficial radiation therapy
(SRT), which is the culmination of more than a decade of research
and development, to treat non-melanoma skin cancers and keloids
with its SRT-100™, SRT-100+™ and SRT-100 Vision™ systems. With its
portfolio of innovative medical device products, including
aesthetic lasers and its needleless TransDermal Infusion System™,
Sensus provides revolutionary treatment options to enhance the
quality of life of patients around the world.
For more information, visit
www.sensushealthcare.com.
Forward-Looking Statements
This press release includes statements that are,
or may be deemed, ''forward-looking statements.'' In some cases,
these statements can be identified by the use of forward-looking
terminology such as "believes," "estimates," "anticipates,"
"expects," "plans," "intends," "may," "could," "might," "will,"
"should," “approximately,” "potential" or negative or other
variations of those terms or comparable terminology, although not
all forward-looking statements contain these words.
Forward-looking statements involve risks and
uncertainties because they relate to events, developments, and
circumstances relating to Sensus, our industry, and/or general
economic or other conditions that may or may not occur in the
future or may occur on longer or shorter timelines or to a greater
or lesser degree than anticipated. Although we believe that we have
a reasonable basis for each forward-looking statement contained in
this press release, forward-looking statements are not guarantees
of future performance, and our actual results of operations,
financial condition and liquidity, and the development of the
industry in which we operate may differ materially from the forward
looking statements contained in this press release, as a result of
the following factors, among others: the continuation and severity
of the COVID-19 pandemic, including its impact on sales and
marketing; our ability to achieve profitability; our ability to
obtain and maintain the intellectual property needed to adequately
protect our products, and our ability to avoid infringing or
otherwise violating the intellectual property rights of third
parties; the level and availability of government and/or third
party payor reimbursement for clinical procedures using our
products, and the willingness of healthcare providers to purchase
our products if the level of reimbursement declines; the regulatory
requirements applicable to us and our competitors; our ability to
efficiently manage our manufacturing processes and costs; the risks
arising from doing business in China and other foreign countries;
legislation, regulation, or other governmental action that affects
our products, taxes, international trade regulation, or other
aspects of our business; concentration of our customers in the U.S.
and China, including the concentration of sales to one particular
customer in the U.S.; and other risks described from time to time
in our filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q.
At the present time, we do not expect that the
Russian invasion of Ukraine and global geopolitical uncertainty
will have any particular impact on our business, but we continue to
monitor developments and will address them in future disclosures,
if applicable.
In addition, even if future events,
developments, and circumstances are consistent with the
forward-looking statements contained in this press release, they
may not be predictive of results or developments in future periods.
Any forward-looking statements that we make in this press release
speak only as of the date of such statement, and we undertake no
obligation to update such statements to reflect events or
circumstances after the date of this press release, except as may
be required by applicable law. You should read carefully our
"Introductory Note Regarding Forward-Looking Information" and the
factors described in the "Risk Factors" section of our periodic
reports filed with the Securities and Exchange Commission to better
understand the risks and uncertainties inherent in our
business.
Contact: LHA Investor Relations
Kim Sutton Golodetz212-838-3777kgolodetz@lhai.com
(Tables to follow)
SENSUS
HEALTHCARE, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended |
|
For the Six
Months Ended |
|
(in
thousands, except share and per share data) |
|
June 30, |
|
June 30, |
|
|
|
|
2022 |
|
|
|
|
2021 |
|
|
|
|
2022 |
|
|
|
|
2021 |
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
Revenues |
|
$ |
12,080 |
|
|
|
$ |
5,422 |
|
|
|
$ |
22,417 |
|
|
|
$ |
8,492 |
|
|
Cost
of sales |
|
|
3,824 |
|
|
|
|
2,077 |
|
|
|
|
7,013 |
|
|
|
|
3,561 |
|
|
Gross profit |
|
|
8,256 |
|
|
|
|
3,345 |
|
|
|
|
15,404 |
|
|
|
|
4,931 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing |
|
|
1,728 |
|
|
|
|
1,254 |
|
|
|
|
2,946 |
|
|
|
|
2,322 |
|
|
General and
administrative |
|
|
1,131 |
|
|
|
|
1,445 |
|
|
|
|
2,404 |
|
|
|
|
2,417 |
|
|
Research and
development |
|
|
827 |
|
|
|
|
925 |
|
|
|
|
1,556 |
|
|
|
|
1,586 |
|
|
Total operating expenses |
|
|
3,686 |
|
|
|
|
3,624 |
|
|
|
|
6,906 |
|
|
|
|
6,325 |
|
|
Income (loss) from operations |
|
|
4,570 |
|
|
|
|
(279 |
) |
|
|
|
8,498 |
|
|
|
|
(1,394 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
asset sale |
|
|
- |
|
|
|
|
- |
|
|
|
|
12,779 |
|
|
|
|
- |
|
|
Interest
income |
|
|
25 |
|
|
|
|
- |
|
|
|
|
28 |
|
|
|
|
1 |
|
|
Interest
expense |
|
|
(1 |
) |
|
|
|
- |
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
Other income (expense), net |
|
|
24 |
|
|
|
|
- |
|
|
|
|
12,806 |
|
|
|
|
- |
|
|
Net
Income (loss) before income tax |
|
|
4,594 |
|
|
|
|
(279 |
) |
|
|
|
21,304 |
|
|
|
|
(1,394 |
) |
|
Provision
for income tax |
|
|
1,070 |
|
|
|
|
- |
|
|
|
|
1,718 |
|
|
|
|
- |
|
|
Net
income (loss) |
|
|
3,524 |
|
|
|
|
(279 |
) |
|
|
|
19,586 |
|
|
|
|
(1,394 |
) |
|
Net
income (loss) per share – basic |
|
$ |
0.21 |
|
|
|
$ |
(0.02 |
) |
|
|
$ |
1.19 |
|
|
|
$ |
(0.08 |
) |
|
– diluted |
|
$ |
0.21 |
|
|
|
$ |
(0.02 |
) |
|
|
$ |
1.17 |
|
|
|
$ |
(0.08 |
) |
|
Weighted average number of shares used in computing net
income (loss) per share – basic |
|
|
16,495,043 |
|
|
|
|
16,453,603 |
|
|
|
|
16,508,629 |
|
|
|
|
16,463,092 |
|
|
– diluted |
|
|
16,635,124 |
|
|
|
|
16,453,603 |
|
|
|
|
16,713,250 |
|
|
|
|
16,463,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSUS
HEALTHCARE, INC. |
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
As of June
31, |
|
|
As of
December 31, |
|
(in
thousands, except shares and per share data) |
|
2022 |
|
|
2021 |
|
|
|
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
33,703 |
|
|
|
$ |
14,519 |
|
|
Accounts
receivable, net |
|
|
10,311 |
|
|
|
|
12,130 |
|
|
Inventories |
|
|
1,685 |
|
|
|
|
1,759 |
|
|
Prepaid and
other current assets |
|
|
5,266 |
|
|
|
|
2,837 |
|
|
Total current assets |
|
|
50,965 |
|
|
|
|
31,245 |
|
|
Property and equipment, net |
|
|
420 |
|
|
|
|
605 |
|
|
Intangibles, net |
|
|
98 |
|
|
|
|
146 |
|
|
Deposits |
|
|
35 |
|
|
|
|
75 |
|
|
Deferred tax asset |
|
|
3,744 |
|
|
|
|
- |
|
|
Operating lease right-of-use assets, net |
|
|
1,087 |
|
|
|
|
169 |
|
|
Total assets |
|
$ |
56,349 |
|
|
|
$ |
32,240 |
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
4,812 |
|
|
|
$ |
4,058 |
|
|
Product
warranties |
|
|
315 |
|
|
|
|
508 |
|
|
Operating
lease liabilities, current portion |
|
|
183 |
|
|
|
|
174 |
|
|
Loan
payable |
|
|
- |
|
|
|
|
51 |
|
|
Income tax
payable |
|
|
3,690 |
|
|
|
|
- |
|
|
Deferred
revenue, current portion |
|
|
1,178 |
|
|
|
|
1,172 |
|
|
Total current Liabilities |
|
|
10,178 |
|
|
|
|
5,963 |
|
|
Operating lease liabilities, net of current
portion |
|
|
940 |
|
|
|
|
- |
|
|
Deferred revenue, net of current portion |
|
|
186 |
|
|
|
|
262 |
|
|
Total liabilities |
|
|
11,304 |
|
|
|
|
6,225 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Preferred
stock, 5,000,000 shares authorized and none issued and
outstanding |
|
|
- |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value – 50,000,000 authorized; 16,761,811 issued
and 16,556,025 outstanding at June 30, 2022; 16,694,311 issued and
16,617,274 outstanding at December 31, 2021 |
|
|
168 |
|
|
|
|
167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
paid-in capital |
|
|
44,586 |
|
|
|
|
44,115 |
|
|
Treasury
stock, 205,786 and 77,037 shares at cost, at June 30, 2022 and
December 31, 2021, respectively |
|
|
(1,353 |
) |
|
|
|
(325 |
) |
|
Retained
earnings (Accumulated deficit) |
|
|
1,644 |
|
|
|
|
(17,942 |
) |
|
Total stockholders’ equity |
|
|
45,045 |
|
|
|
|
26,015 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
56,349 |
|
|
|
$ |
32,240 |
|
|
|
|
|
|
|
|
|
|
|
Sensus Healthcare (NASDAQ:SRTS)
Historical Stock Chart
From May 2024 to Jun 2024
Sensus Healthcare (NASDAQ:SRTS)
Historical Stock Chart
From Jun 2023 to Jun 2024